Key Financial Performance - Q4 FY26

Chemical Business Performance:

  • Revenue: ₹1,358 crores, growing 11% year-on-year
  • EBITDA: ₹353 crores, increasing 13% year-on-year
  • PAT: ₹169 crores, rising 5% year-on-year

Segment-wise Performance:

  • Fluoropolymers segment delivered strong performance with revenues growing 19% year-on-year and 14% quarter-on-quarter to ₹848 crores in Q4 FY26
  • Growth driven by value-added products and higher volumes across key product categories
  • R-32 refrigerant production commenced in March 2026

Capital Expenditure Plans

FY27 Capex Allocation: ₹3,150 crores total

  • GFCL EV Products: ₹2,300 crores for battery materials expansion
  • GFL Chemical Business: ₹850 crores breakdown:
  • ₹150 crores: Refrigerant gas and related infrastructure capacity expansion
  • ₹222 crores: New high-purity electronic specialty chemicals for semiconductor sector
  • ₹250 crores: New fluoropolymer capacities
  • ₹230 crores: Backward integration capacities including regular annual maintenance capex

Long-term EV Capex Guidance: ₹6,000 crores cumulative capex by FY28 across battery materials portfolio with targeted asset turns of nearly 2x and EBITDA margins of over 25%+

Business Segment Updates

Fluoropolymers Business:

  • Focus on high-value specialty grades, deeper customer engagement and expanding global reach
  • Long-term outlook supported by increasing penetration across semiconductors, EVs, battery energy storage systems and clean energy applications
  • Global energy transition themes including hydrogen, fuel cells, electrolyzers and solar emerging as important long-term demand drivers
  • Earlier capex achieving optimum utilization level in current financial year
  • FY27 growth guidance: 15-20% growth expected compared to last year

Fluorochemicals Business:

  • R-32 production commenced from March 2026, strengthening refrigerant portfolio
  • Stable performance despite Middle East market weakness in March and challenging global environment
  • Demand for refrigerants expected to remain healthy supported by residential air conditioning, commercial refrigeration, cold chain infrastructures and AI data center cooling demand
  • Bulk chemicals: Caustic soda demand outlook stable in FY27, pricing likely range-bound due to domestic capacity additions
  • Fluoromethane business expected to remain range-bound in near term amid moderate demand conditions

Battery Materials Business (GFCL EV Products):

  • Segment at important inflection point with accelerating global energy transition
  • Battery energy storage system opportunity strengthened significantly over last few quarters
  • All initial capacities planned under phase one commissioned and contracted
  • Secured marquee anchor customers across all battery material products
  • LiPF6 salt received approvals from most major global electrolyte players, commercial sales scaling up
  • Orders in place for FY27 and beyond, production ramping up quarter-on-quarter
  • Cathode active material samples received initial approval, final qualification expected by end of Q3 FY27
  • Commercial supply to commence after qualification with off-take agreements for entire capacity
  • New natural graphite anode active material facility being set up
  • With anode addition, company will address nearly 70% of value of LFP battery cell
  • FY27 expected to show material quantity for salt business, LFP supply to start after Q3 qualification

Operational Challenges

Macroeconomic Environment:

  • FY26 marked by highly volatile global operating environment
  • First half impacted by uncertainty surrounding U.S. tariff policies and evolving global trade dynamics
  • Latter part witnessed heightened geopolitical tensions amidst war in Middle East
  • Conditions disrupted global trade flows, impacted logistics and supply chains
  • Contributed to elevated volatility across commodities and currency markets
  • Sharp movement in energy prices resulted in higher input and logistic costs across businesses

Battery Materials Business Performance:

  • Q4 FY26 saw increased losses due to capitalization of assets and operational ramp-up costs
  • LiPF6 plant capitalized on 5th January 2026, leading to P&L recognition of all operational expenses
  • Foreign currency buyer's credit mark-to-market loss due to extreme dollar-INR movement from Iran-U.S. war
  • Losses expected to ease off as business scales up

Working Capital:

  • Inventory days increased due to distribution model requiring 30-90 days inventory at plants
  • 30-90 days inventory at international warehouses (Germany and U.S.)
  • 30-60 days sea transit time
  • Insurance stock requirements for marquee customers with Just-In-Time concepts
  • Increased voyage times from 3-4 weeks to 7-8 weeks due to geopolitical scenario
  • EV business raw material inventory buildup adding to working capital requirements
  • Average credit period of 60-90 days with limited creditor benefits due to full integration

Management Guidance

Short to Medium-term Outlook:

  • Growth driven by refrigerant and fluoropolymer segments
  • R-32 capacity ramp-up to 20,000 tons progressing
  • Fluoropolymers benefiting from price increases taken in response to rising raw material and logistics costs
  • Battery materials business showing quarter-on-quarter revenue growth
  • Expect to reach 3-digit revenue numbers by Q4 FY27 for battery materials

Long-term Outlook:

  • Medium to long-term growth equally encouraging as advanced battery materials business scales up
  • Full earnings potential of investments expected to be realized by FY29
  • Facilities to progressively ramp up and achieve optimum utilization levels